Why Bandwidth Stock Soared 41.5% This Morning
Shares of cloud communications company Bandwidth (NASDAQ: BAND) blazed 41.5% higher on Monday, as of 10:15 a.m. ET, after "beating earnings" by a factor of nine last night.
Heading into Q3 earnings, analysts had forecast Bandwidth would earn only $0.03 per share (pro forma) on sales of $140.9 million. In fact, Bandwidth earned $0.27 per share, and sales came in at $148 million.
Now, the news wasn't entirely good. Sales actually grew only about 13% year over year, which isn't bad, but isn't super. And gross profit margins on those sales actually declined about one percentage point to 43%. (At least, when calculated according to generally accepted accounting principles (GAAP), they declined. Pro forma gross margins improved by 300 basis points).
Source Fool.com
